New reports show that Ryanair is now thinking of easing back on its decade long expansion. This new change in growth strategy comes as the hotel chain aims to keep a lid on its operating costs and keep offering customers low fares.

Ryanair went on to report that it has had a 35 percent jump in its net profits for the three months to September 30^th. This is thanks mostly to a 42 percent drop in oil prices when compared to last year. However, without the reduced fuel bill, the airline would not be able to mask its steep 17 percent decline in average fares for the same period.

Ryanair did go on to warn its investors that it plans to cut average fares by about 20 percent over the next six months. This means that it would have a loss for the second half of the year. However, the company says that it still forecasts a profit for the full year.

The airline went on to say that, if it cannot sign a deal with Boeing for 200 planes by the end of the year, it will be returning surplus cash to shareholders as dividends. Michael O’Leary went on to say that the talks with Boeing have not progressed much. Thus, this could bring an end to the traditional relationship that the airline has had with the United States aircraft maker.

Michael O’Leary went on to say that they see no point to continue their growth so rapidly in a declining yield environment. This goes double since their main aircraft partner is unwilling to play its part in the company’s cost reduction program.